What If I Go Freelance?

The Secret Weapon of Freelancers

One of the biggest advantages of being a freelancer (or independent contractor) over a W-2 salaried employee is the ability to write off business expenses.

Pre-Tax vs Post-Tax Spending

As an employee, you buy your laptop, internet, and office supplies with post-tax money. As a freelancer, these are business expenses purchased with pre-tax money, effectively lowering your total taxable income.

This means a $100,000 freelance income with $20,000 in valid deductions is only taxed on $80,000. Use the calculator above to compare the exact take-home pay of freelancing versus a traditional salary.